Regarding the implementation of the work agenda in July 2020 and the implementation of the work agenda in August 2020 of the Ministry of Finance

Regarding the implementation of the work agenda in July 2020 and the implementation of the work agenda in August 2020 of the Ministry of Finance 08/08/2020 03:03:00 109

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Regarding the implementation of the work agenda in July 2020 and the implementation of the work agenda in August 2020 of the Ministry of Finance

I. ASSESSMENT OF THE IMPLEMENTATION OF THE WORK AGENDA IN JULY 2020

1. The work of formulating and improving financial mechanisms and policies

- The agenda of formulating laws and ordinances to be submitted to the National Assembly: According to the work agenda, the Ministry of Finance is responsible for drafting and submitting 03 Resolutions to the Government. As of 29 July 2020, the Ministry of Finance had completed 100% of the assigned tasks under the agenda on formulating laws and ordinances in 2020.

In addition, the Ministry of Finance submitted to the Government for submission to the National Assembly’s Standing Committee (NASC) 04 Resolutions of the NASC, 03 of which were approved by the NASC and 01 of which was submitted to the Government for submission to the NASC (Resolution of the NASC on adding medical supplies and equipment to the List of National Reserve Goods). The Ministry of Finance submitted Decree No. 70/2020/ND-CP dated 28 June 2020 to the Government for promulgation, the Decree provided for the registration fee for domestically manufactured and assembled cars until 31 December 2020.

- Schemes submitted to the Government and the Prime Minister: As of 31 July 2020, the Ministry of Finance had had 03 schemes submitted to the Government.

- Schemes under the authority of the Ministry of Finance and regular work under the agenda: By the end of 31 July 2020, the Ministry of Finance had issued under its authority 08 Circulars.

2. The implementation of the state budget plan and the management and administration of state budget revenues and expenditures

2.1. State budget revenues and the management and administration of state budget revenues

The total balanced state budget revenue in July was estimated at VND 107.9 trillion. Accumulated revenues in 7 months reached VND 779.8 trillion, equaling 51.6% of the plan, down 13.1% compared to the same period of 2019 (the central budget was estimated to have reached 48.3% of the plan; local budgets were estimated to have reached 55.8% of the plan). Of which:

- Domestic revenues: The accumulated 7-month revenues were estimated at VND 649.9 trillion, equaling 51.4% of the plan, down 10.6% compared to the same period of 2019 (the same period of 2019 reached 62% of the 2019 plan, up 13.2%) .

Following the Government's guidelines and the Prime Minister's instructions, the Ministry of Finance proposed solutions on preferential tax treatment, tax exemption, tax reduction, and extension of payment deadlines of taxes and other budget revenues to remove difficulties for enterprises and business households. Tax and Customs authorities focused on implementing solutions set out by the Ministry of Finance, especially measures to extend payment deadlines of taxes and land rent to remove difficulties for enterprises and business households as a response to the pandemic according to Decree No. 41/2020/ND-CP dated 8 April 2020 of the Government.

In addition, the Tax authorities also strengthened the inspection and supervision to prevent policy abuses of the state budget; strictly handled tax violations.

Regarding the implementation of Decree No. 41/2020/ND-CP and Resolution No. 42/NQ-CP, according to the quick reports of tax departments as of 27 July 2020:

+   The Tax authorities received about 170,000 requests for tax and land rent payment deadline extension. The amount of tax and land rent whose payment deadlines were extended was VND 53 trillion (in which: value-added tax (VAT) was VND 28.5 trillion, corporate income tax was VND 20.5 trillion, land rent was VND 3.4 trillion; VAT and personal income taxes of business households and individuals in the first quarter of 2020 were VND 0.6 trillion).

+  The Tax authorities focused on promoting communications about the State's policies, promptly and properly received and processed dossiers for business households facing difficulties due to the Covid-19 pandemic. As of 27 July 2020, 44.6 thousand business households had sent their dossiers to the communal People's Committees and 11.6 thousand dossiers had been sent to the provincial People's Committees for appraisal. The localities provided funding to about 12.6 million subjects; the total amount of funding was VND 12.4 trillion, in which, the central budget provided VND 2.9 trillion to 26 localities to perform this task.

- Revenues from crude oil: Accumulated 7-month revenues were estimated at VND 23 trillion, equaling 65.4% of the plan, down 32.6% compared to the same period of 2019. Average crude oil payment price reached USD 48.3/barrel, lower than estimated prices (by USD 11.7/barrel), equaling about 70.5% of the figure of the same period in 2019; The output was estimated at 5.5 million tons, equal to 61.8% of the plan, equivalent to 79.5% of the figure of the same period in 2019.

- Income from import and export activities: The accumulated revenues in the first 7 months were estimated at VND 106.47 trillion, equaling 51.2% of the plan, down 20.5% compared to the same period of 2019, on the basis of the total tax revenues estimated at VND 175 trillion, equaling 51.8% of the plan, down 15.3% compared to the same period of 2019; VAT refund in accordance with the prescribed regime was about VND 68.53 trillion.

The global situation of the Covid-19 pandemic is becoming more complicated, affecting international trade by decreasing demands for goods and creating difficulties in customs clearance. The total import and export turnover of goods in the first 7 months of the year was estimated at USD 285.1 billion, down 1.3% compared to the same period of 2019, of which import turnover of a number of items with large budget revenue contributions decreased, such as: gasoline and oils of all kinds (down 48.7%), cars (down 47.6%), iron and steel (down 14.1%), machinery, equipment, tools and spare parts (down 4.2%), .... which reduced budget revenues from import and export activities.

2.2. State budget expenditures and the management and administration of state budget expenditures

Total state budget expenditures in July were estimated at VND 117.3 trillion. Accumulated expenditures in 7 months reached VND 855.5 trillion, equal to 49% of the plan, up 10.1% compared to the same period of 2019; of which: expenditures for investment and development reached nearly VND 192 trillion, equaling 40.8% of the estimate, still low compared to the requirements, interest payment was VND 68.27 trillion, equaling 57.8% of the plan, approximating to the figure of the same period in 2019; recurrent expenditures reached VND 589.8 trillion, equal to 55.8% of the plan, up 4.2% compared to the same period in 2019 (of which the state budget spent about VND 17.67 trillion on pandemic prevention and control and on providing support to people facing difficulties caused by the Covid-19 pandemic).

In general, the state budget completed the budget expenditure tasks in July and the first 7 months of the year in accordance with the plan and unexpected tasks related to the prevention of natural disasters and epidemics. By now, the state budget has spent about VND 17.67 trillion on pandemic prevention and control and on providing support to people facing difficulties caused by the Covid-19 pandemic, of which: expenditures on pandemic prevention was about VND 5.37 trillion; financial support for 12.4 million people affected by the Covid-19 pandemic under the Government's Resolution No. 42/NQ-CP was about VND 12.3 trillion. In addition, about 13.6 thousand tons of rice from the National Reserves have been provided to people in need, to relieve hunger and overcome the consequences of natural disasters and transitional periods between harvests at the beginning of the year.

Implementing Resolution 122/2020/QH14 of the 9th session, XIV National Assembly on 19 June 2020 and Resolution No. 84/NQ-CP dated 29 May 2020 of the Government, the Ministry of Finance issued guidelines for ministries, central and local agencies to reduce at least 70% of the planned expenses related to domestic/foreign business trips and conferences and to save an additional 10% of planned recurrent expenditures in 2020, especially with regard to non-essential procurement expenditures...

2.3. Regarding the balance of the state budget and capital mobilization

Balance of central budget and local budgets was guaranteed. As of 28 July 2020, the Ministry of Finance issued VND 154.68 trillion of government bonds under the 2020 plan to pay off due bonds and to issue debts with Vietnam Social Security in accordance with the Resolution of the National Assembly (VND 9.090 billion), with an average term of 13.41 years, the average interest rate is 2.96%/year (the average rate in 2019 was 4.51%/year).

3. Results of implementing a number of key tasks

3.1. Corporate finance management and equitization and divestment of state-owned enterprises

- Regarding the equitization situation: in the first 7 months of 2020, the Ministry of Finance received a report regarding the approval of the equitization plans of 06 enterprises. The number of enterprises still having to implement equitization according to the 5-month plan in the later half of 2020 is 91 enterprises.

- Regarding the divestment situation: according to the report of the units in 7 months, there are 10 enterprises on the list that must implement divestment under Decision No. 1232/QD-TTg with a book value of VND 260 billion, earning VND 678 billion. In the first 7 months of 2020, business groups and general corporations implemented divestment with a book value of VND 601 billion, earning VND 1,110 billion.

3.2. Price and market management

The Ministry of Finance has actively coordinated with ministries, sectors and localities to implement solutions to stabilize market prices, especially with regard to essential commodities such as staple foods, non-staple foods, commodities for Covid-19 pandemic prevention and control and raw materials used in production and business activities whose prices are determined by the State.

Gasoline and oil prices have been closely monitored and adjusted in line with world gasoline and oil price fluctuations. Along with the trend of price movements in the international market, the retail prices of petroleum products in the country from the beginning of the year until now have been adjusted down 8 times, up 5 times, and to be kept stable once (for gasoline products); regarding oil products, the prices have been adjusted down 9 times, up 4 times and to be kept stable once.

Thanks to the implemented solutions, the market price levels in the first 7 months of the year did not witness significant changes.

3.3. Management of financial services and the financial market

- Regarding the stock market: On 31 July 2020, the Vn - Index reached 798.39, down 16.92% compared to the end of 2019; The size of the stock market was about VND 3,838 trillion, equivalent to 63.6% of GDP, down 12.4% compared to the end of 2019.

- Regarding the insurance market: Total value of insured properties in 7 months of 2020 reached VND 514.2 trillion, up 20%; re-investment into the economy was estimated at VND 414 trillion, up 19%; total equity was VND 110.7 trillion, up 20.3%; total insurance premium revenues reached VND 98.7 trillion, up 15.2%; insurance benefit payment reached VND 26 trillion, up 18.2% compared to the same period in 2019.

3.4. International cooperation

In July, the Ministry of Finance implemented a number of activities such as: Preparing content for and participating in the Mid-term RCEP Ministerial Meeting; Continuing to prepare content for the virtual ASEAN/ASEAN+3 Finance Ministers’ Meeting and the virtual ASEAN/ASEAN+3 Finance and Central Bank Deputies’ Meeting...

3.5. External finance and public debt management

By 23 July 2020, the Government had signed 7 foreign loan agreements with creditors from Japan, France, South Korea and the World Bank with the value of about USD 885 million.

In July 2020, the Government withdrew USD 143 million from foreign loans, of which about VND 108 million was re-allocated, and about USD 35 million was for on-lending. In the first 7 months of 2020 (from 1 January to 23 July 2020), disbursement of ODA loans and foreign concessional loans was about USD 1,175 million (equivalent to about VND 27,099 billion, reaching 25% of the plan for the whole year), of which about USD 809 million was re-allocated and USD 366 million was for on-lending.

3.6. State reserves management

Implementing the tasks assigned by the Prime Minister, as of 15 July 2020, the General Department of State Reserves has authorized Regional State Reserves Departments to deliver 62,105 tons of rice to support Tet holiday, natural disasters, between-harvest seasons, the second term of school year 2019-2020, and support Cuba. The General Department of State Reserves completed storing 165,000/190,000 tons of rice (reaching 87% of the plan) and 70,000/80,000 tons of paddy (reaching 88% of the plan).

Besides, the receipt and delivery of materials and equipment of the national reserve were implemented according to the proposed plan, actively supporting the National Committee for Natural Disaster Response and Search and Rescue and Department of Defense to equip military units to perform the task of preventing and fighting against Covid-19.

3.7. Inspection, examination, prevention of smuggling and trade fraud

In the first 7 months of 2020, the Department of Finance Inspectorate and Departments having specialized inspection function under the Ministry examined 301,737 declaration documents at the headquarters; arrested 7.988 cases by anti-smuggling investigations. Through inspection and examination, the financial settlement had been proposed over VND 34,000 billion; Inspected and examined Units collected and paid to the State Budget more than VND 6,800 billion.

3.8. Administrative reform and control of administrative procedures

The Ministry of Finance implemented the administrative reform under Decision No. 2763/QD-BTC dated 26 December 2019. In the first 7 months of 2020, the Ministry of Finance implemented 105/180 tasks.

As of 27 July 2020, the Ministry of Finance has provided online public services for 959/959 administrative procedures, including 105 level-1 online public services, 282 level-2 online public services, 208 level-3 online public services, 364 level-4 online public services. Up to now (27 July 2020), the Ministry of Finance has integrated 157 online public services at level 3 and level 4 into the National Public Service Portal.

II. MAJOR PLANS AND TASKS IN AUGUST 2020

1. Mechanism and policy proposals

In August 2020, the Ministry of Finance shall formulate and submit 11 proposals to the Government and the Prime Minister and shall issue 39 Circulars.

2. Major tasks in August 2020

2.1. The implementation of State budget estimates, the administration of state budget revenues and expenditures

- The Ministry of Finance shall study the draft of Decree of the Government on the management of non-state budget financial funds; shall chair the discussion on local budget expenditure estimates for 2021, 3-year state budget financial plans of 2021-2023 with provinces/cities under central...

-The General Department of Taxation and the General Department of Customs shall implement solutions to fulfill the 2020 State budget revenue tasks for the whole country as well as each locality following the Directives of Prime Minister and Resolutions of the Government and the National Assembly.

- The Ministry of Finance shall issue a process for unifying the focal point of expenditure control at the provincial state Treasury in association with online public services; shall complete the business processes associated with the application of IT in controlling state budget spending.

- The Ministry of Finance shall participate with Ministries, sectors and localities in the medium-term public investment plan of 2016-2020 and the public investment plan for 2020; appraise capital sources of projects funded by 10% local contingency and medium-term contingency of 2016-2020; synthesize the disbursement report in August 2020 and report to the Prime Minister; Prepare documents, reports and participate in inspection delegations of the leaders of the Government and Ministries on accelerating the disbursement of public investment capital.

2.2. Public asset management

The Ministry of Finance shall concentrate and accelerate the completion of the draft Decree on amending and supplementing the Government's Decree No. 167/2017/ND-CP dated 31 December 2017 on rearranging and handling of public properties; complete the draft Decree on the management, use and exploitation of infrastructure assets supplying water to submit to Ministers for receiving (the second) opinions of ministries, sectors and localities ...

2.3. Budget management and capital mobilization, strict management of public debt

- The Ministry of Finance shall organize the administration of funds, ensure the payment and expenditure needs of the State budget and departments dealing with the State Treasury.

- The Ministry of Finance shall synthesize and acquire opinions of relevant agencies to submit to the Government for promulgating a Decree amending a number of articles of Decree No. 97/2018/ND-CP dated 30 June 2018 on on-lending ODA, foreign concessional loans of the Government; coordinate with the Government Office to submit to the Prime Minister to submit to the President the extension of the Framework Financing Agreement and Loan Agreement for Ben Luc - Long Thanh Expressway Project and the Framework Financing Agreement for the Water Sector Investment Program of ADB.

2.4. Corporate finance management and State-owned enterprise equitization

The Ministry of Finance shall coordinate with Ministries, sectors and localities in restructuring, equitizing and divesting of SOEs; develop the project "Restructuring state-owned enterprises, focusing on state economic groups and corporations in the period of 2021-2025"; organize missions to supervise state capital investment in 2019 in enterprises, monitor and handle financial problems of enterprises.

2.5. Price management, market stabilization

The Ministry of Finance shall proactively monitor changes of petroleum prices in the world and domestic to formulate the plan to manage petroleum prices in the period of August 2020; coordinate with the Ministry of Industry and Trade to regulate petroleum prices strictly according to current regulations; comment on the price appraisal and policy mechanism at the request of the ministries, sectors and localities on the price plan for a public product or service ordered by the State; evaluate the purchase and sale price plans, expenses for importing, exporting and preserving agricultural goods on the list of goods on national reserve and on goods ordered and planned by the State.

2.6. Management of the financial market and financial services

- The Ministry of Finance shall deploy activities to formulate documents detailing the implementation of the Securities Law 2019 according to the plan; perform the inspection plan for the public companies, securities business organizations and auditing companies approved on the basis of adjusted plan; strictly handle violations on the basis of supervision results (taking into account the disease situation of Covid-19); closely monitor securities transactions showing abnormal signs; promptly coordinate with 02 Stock Exchanges in assessing, analyzing and examining of transactions showing signs of violation of regulations;

- The Ministry of Finance shall coordinate with the Government Office to submit to competent authorities for promulgating or giving direction on the proposal to formulate a Decree amending and supplementing the Decree on State investment credit and Decree on casino business; coordinate with the Ministry of Justice to appraise projects on the Decree amending and supplementing Decree No. 86/2013/ND-CP on the business of prize-winning electronic games for foreigners, Decree replacing the Decree No. 163/2018/ND-CP on issuance of corporate bonds...

- The Ministry of Finance shall coordinate with departments to formulate projects related to the insurance field under the registered program.

2.7. International cooperation

The financial integration and cooperation of the Ministry of Finance in August 2020 is expected to carry out some activities such as: Preparing content and attending the RCEP Ministerial Conference (online); Chairing The ASEAN+3 Finance and Central Bank Deputies’ Meeting ...

2.8. Inspection and examination

Department of Finance Inspectorate and Departments under the Ministry specialized in inspection shall base on the situation of Covid-19 disease control to organize inspections at a number of departments following the approved 2020 plan to ensure their compatibility with the actual situation.

The Ministry of Finance shall perform well its role as an assisting unit of the Standing Office of the National Steering Committee 389 to perform regular and irregular tasks of the Steering Committee 138/CP in the field of customs control.

The Ministry of Finance shall guide Tax Departments to adjust the tax inspection and examination plans in 2020 according to Resolution No. 84/NQ-CP; promulgate the process of examining tax law observance at tax department's offices; continue to deploy internal inspection teams at Tax Departments of provinces and cities according to the plan.

The Ministry of Finance summarized key information about the implementation of financial and budgetary tasks in July 2020, the working agenda of August 2020. The Ministry of Finance requests press agencies to coordinate in public communication and information dissemination./.

Recipients:

image- Central Propaganda Committee;      

- Ministry of Information

and Communications; 

- Department of General Affairs, (to report)

Government Office;

- Ministry leaders;

image- News agencies;  

- Vietnam Government Portal

(VGP);               (to cooperate)

- E-portal of Ministry of Finance;

- Archived: Clerical staff, Office.

AUTHORIZED BY THE MINISTER

CHIEF OF MINISTERIAL OFFICE

(Signed)

Tran Quan